See further softening in interest rates: Chanda Kochhar

From the sidelines of the World Economic Forum at Davos, Chanda Kochhar, MD & CEO of ICICI Bank , says India is at a point where most of the macroeconomic indicators are positive and it is time to capitalise on all the potential that the country has.

When asked on her view whether the Modi government would deliver on its promises, she was optimistic that Narendra Modi would deliver.

On the interest rate front, she expects further softening, which would be good for the whole economy.

Below is the transcript of Chanda Kochhar's interview with by Susan Li & Geoff Cutmore

Li: We spoke earlier with the State Bank of India chairwoman and she said because of this unleashing, more easing and business stimulus from the ECB - is good for India, your thoughts?

A: Of course it is. The more the liquidity in the market, I think that is good for India but what is of course required for India is to maintain its investment climate so that it continues to remain a great investment destination.

Cutmore: Is Narendra Modi going to deliver? That is the question I keep hearing here, a lot of people are very optimistic about India and there does seem to be a rerating going on here but at some point we are going to have to see some real concrete evidence of reforms?

A: Definitely I think he is going to deliver and I think that direction is correct - everything all the policies that he has articulated are growth friendly, they are business friendly. And also it is not that no action has taken place, a lot of small action has taken place, a lot of opening up of the foreign direct investment (FDI) in various sectors has taken place. So I think a lot of the decisions have already been announced but yes, the impact of all those on the real economy always takes a little bit of time.

Li: So you have two months to go until he finishes off his first year in office but I would say there has been a bit of a flip-flopping from Modi because when he was the head of Bhartiya Janata Party (BJP) and there was another administration in office, he was against introducing goods and services tax (GST) but now he said okay we are going to introduce the GST in India.

A: I think GST is very good for the economy. If it gets implemented, it can add almost one percent to the GDP. GST rationalises taxes. So overall it brings about efficiency in taxes and that is how it adds to the gross domestic product (GDP). So I think it is good for the entire economy as a whole.

Cutmore: Modi has got a wonderful opportunity here because India as a buyer of energy is going to see tremendous benefits from this declining oil price. So if not now then it will be a missed opportunity.

A: Yes, I think in that sense everything is working well for India because we have never seen oil prices being what they are and it has a huge positive impact on India but if you look at it even from the various macroeconomic indicators point of view, India is very well placed. So you are right, this is the time for us to capitalise on the potential we have but we are on the right track.

Li: What about rate cuts because we have got that just as a surprise move from Governor Rajan and some say this is just only beginning because we might be in this deflationary spiral because of the weaker oil price?

A: But in India I don't think it was a surprise move. People were waiting for the rate cut, it was quite anticipated and in fact the 25 bps cut that has happened, it is just the beginning. We should see some more softening of interest rates taking place and I think that is going to be good for the economy.

Cutmore: What does it mean for your business specifically because I know the analysts that have looked at have talked about net interest lending margins could be bigger, could be a bit fatter but will that be easy in a market place where interest rates are coming down?

A: No, I think we should expect that net interest margins would be maintained because gradually cost of funds would come down and the banks would pass that on to the consumer so it should neither expand nor shrink.

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Spectrum cannot come cheap, it is super-scarce resource

R Jagannathan
Firstpost.com

The Union cabinet's decision to keep the� reserve price for 3G spectrum at Rs 3,705 crore per Mhz �in the 2,100 Mhz band for auctions scheduled to begin on 4 March is probably the right call. One says probably because no one can predict where prices will go in an auction, or whether the reserve prices are too high or too low. The new reserve price is 35 percent higher than what the Telecom Regulatory Authority of India (Trai) had recommended - which Rs 2,720 crore per Mhz. The Telecom Commission recommended a raise, and this is what the cabinet has now approved.

Predictably, the telecom industry is miffed, with Rajan Mathews, Director-General of the Cellular Operators Association of India (COAI), saying that the Trai price was more reasonable and the higher reserve price would inevitably lead to higher tariffs, reports� The Economic�Times .

A few weeks earlier, the cabinet had approved base prices of Rs 3,646 crore per Mhz of 800 Mhz spectrum, Rs 3,980 crore for 900 Mhz, and Rs 2,191 crore for one Mhz of all-India spectrum in the 1,800 Mhz band. Competition is expected to be keen as spectrum licences for Bharti Airtel are expiring in six circles, for Idea in nine, and for Vodafone and Reliance Communications in seven circles each this year. All of them would want to retain their hold on the versatile 900 Mhz band as far as possible. New players in broadband, like Reliance Industries, could also seek extra spectrum for various voice and data services, or to grab prime bands like 800 Mhz and 900 Mhz from the incumbents. The available spectrum in the 2,100 Mhz band is small - 5 Mhz, with 15 Mhz more promised when defence releases them – which could make bidding in this band sharper.

It is possible that the higher reserve/base prices have been prompted by non-tax revenue considerations, given the stiff fiscal deficit target of 4.1 percent this year. But even if this were the case, it would merely be a right decision taken for the wrong reason. Of the Rs 80,000-1,00,000 crore expected from a successful auction, Rs 25,000 crore could come in this financial year itself. Arun Jaitley will be happy to get this money in the till when tax revenues are sluggish.

However, it is time India's telecom industry accepted the reality that spectrum is a super-scarce resource and that it cannot ever come cheap. Their business models and profitability cannot be built on the presumption that underpriced spectrum will be offered in plenty when the resource is actually going to get scarcer in the coming years, given our voracious appetite for broadband services. India has barely scratched the surface of broadband demand, and usage is going to head for the stratosphere with plans for a Digital India being a key driver.

Here are three reasons why spectrum will always be costly in India and why telcos had better understand the reality.

First, Indian has 1.25 billion potential telecom users crammed into a very small geographical area. The US has three times the geographical area and one-fourth the population of India. This automatically means spectrum must be used super efficiently in India. High prices will pressure telcos to avoid spectrum hoarding and use better technology to pump more data through the same available spectrum.

Second, India, as a late starter in mass telephony, is over-dependent on wireless services as opposed to fixed-line telephony. While the decline in the wirelines is a worldwide phenomenon, India has had a very poor legacy of landlines. Hence our dependence on wireless telephony is very high – and growing in leaps and bounds. Of the nearly one billion telephone connections in India, barely three percent will be wireline.

The worldwide the proportion of wireline to wireless telephony is falling dramatically, thanks to the proliferation of mobiles and hand-held devices, the pressure of spectrum will always increase, and more so in India which never expanded much into fixed telephony.

Third, the spectrum prices cleared by cabinet are for the next 20 years. Assuming that the number of uses for spectrum will only rise exponentially as the country gets richer, with data trumping voice usage, the higher tariffs from pricey spectrum can easily be absorbed by the higher spectrum usage in data – especially in the second half of the licence years. In fact, voice will probably become nearly free in due course as data traffic trumps voice in the coming decade.

The only valid reason for keeping spectrum prices steady is that usage is time-sensitive: unlike coal, which can be mined this year or five years later depending on prices and demand, spectrum not used this year is spectrum wasted. However, this makes out a case for flexible pricing and spectrum leasing, not lower reserve prices overall.

What the government can, and should do, is allow spectrum leasing, spectrum mortgage and easy sale of spectrum between parties, apart from allowing easier mergers between viable and unviable telcos.

But, as I have argued before, there is� no real case of going cheap on spectrum pricing .

The writer is editor-in-chief, digital and publishing, Network18 Group

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Sun-Ranbaxy's $4bn merger deal gets USFTC's conditional nod

Approval subject to divestment of one antibiotic product to avoid anticompetitive impact in the US mkt

The US Federal Trade Commission has approved Sun Pharmaceutical 's plan to buy  Ranbaxy on the condition that it divests one antibiotic product - generic minocycline tablets - to avoid anti-competitive impact in the US market. Torrent Pharma  will acquire Ranbaxy's minocycline business in the US.

Generic minocycline tablets are used to treat a wide array of bacterial infections, including pneumonia, acne, and urinary tract infections.

According to the FTC's complaint, the proposed merger would likely harm future competition by reducing the number of suppliers in the US markets for three dosage strengths (50 mg, 75 mg, and 100 mg) of generic minocycline tablets.

Ranbaxy is currently one of three suppliers of the products, while Sun is one of only a limited number of firms likely to sell generic minocycline tablets in the United States in the near future. Sun's entry likely would have resulted in significantly lower prices for these drugs.

Sun-Ranbaxy is currently also in the process of divesting seven brands in India as per the CCI order.

The Sun-Ranbaxy merger now needs approval from just the Punjab and Haryana High Court. The court will be hearing on the merger on February 2.

Sun Pharma had agreed to buy Ranbaxy from Japan's Daiichi Sankyo in April.

Sun Pharma stock price

On January 30, 2015, Sun Pharmaceutical Industries closed at Rs 915.95, down Rs 3.25, or 0.35 percent. The 52-week high of the share was Rs 939.05 and the 52-week low was Rs 552.50.

The latest book value of the company is Rs 35.77 per share. At current value, the price-to-book value of the company was 25.61.

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Report card: 10 things that made or baked your money in January

SLIDESHOW

Sat, Jan 31, 2015 at 17:15

| Source: Moneycontrol.com

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Prabhu pitches for greater investments in Railways

Suresh Prabhu said that Railways' financial health is not good and there is an urgent need of increased investments in the areas of modernisation, safety and security of passengers. "We have decided to increase investment in Railways... We have also decided to connect with various states for this (investment).

Railway Minister Suresh Prabhu pitched for greater investments in railways and said development in the sector will help the country grow. The minister was here to flag off two new trains - Ahmedabad-Chennai bi-weekly express and Ahmedabad-Darbhanga Jansadharan express. He also launched Wi-fi facility at the city railway station.

"It is a matter of pleasure for the country that our economy is on the path of improvement and progress. With this, responsibility of Railways has also increased. We need to work on many levels," said Prabhu.

He said that Railways' financial health is not good and there is an urgent need of increased investments in the areas of modernisation, safety and security of passengers. "We have decided to increase investment in Railways... We have also decided to connect with various states for this (investment).

Railways will fulfil the needs for Gujarat's development as well. I will discuss with the Chief Minister on how to work on larger scale for improvement," he said. Prabhu later met with Chief Minister Anandiben Patel.

The minister also claimed that Railways was priority of the Prime Minister Narendra Modi-led government and the sector can contribute to his mantra of 'Sabka Sath, Sabka Vikas' (participation of all for development of all).

"Development of Railways is on the priority list of our Prime Minister. If railways develop, economy will also be strengthened... and GDP (of the country) will also rise by 2-3 per cent. Though our GDP is growing today, with much efficient railways system it will grow rapidly," he said. The minister said further development in the sector will also create jobs for youths.

Prabhu appealed to people to join Modi's flagship 'Swachh Bharat Abhiyan' and said the mission is associated with country's identity.

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IDFC gets RBI nod to exempt 30% of loan book from SLR/CRR

Suruchi Jain of Morningstar is not surprised and says all banks should be subjected to the same rules. Hence, the exemption is 30 percent of the eligible loans for the first year, which is the same for all the banks, the following years it will be taken up to 50 percent and 60 percent of loans.

The Reserve Bank of India on Friday permitted  IDFC to exempt 30 percent of loan book from Statutory Liquidity Ratio (SLR)/ Cash Reserve Ratio (CRR). Most analysts had expected a 50-100 percent exemption.

In April last year, IDFC and Bandhan Financial Services Pvt bagged the licence from the RBI to set up a bank. IDFC board approved its plans to demerge its financial unit into a wholly-owned step-down subsidiary IDFC Bank Ltd last year.

Suruchi Jain of Morningstar is not surprised and says all banks should be subjected to the same rules. Hence, the exemption is 30 percent of the eligible loans for the first year, which is the same for all the banks, the following years it will be taken up to 50 percent and 60 percent of loans.

Below is the verbatim transcript of Suruchi Jain's interview with Ekta Batra and Latha Venkatesh on CNBC-TV18.

Ekta: Your thoughts and were you on the conference call and about the statutory liquidity ratio (SLR), cash reserve ratio (CRR) exemption if you can fill us in?

A: The exemption is 30 percent of the eligible loans for the first year and that's the same for all the banks and the following years it will be taken up to 50 percent and 60 percent of loans. So it's no different from any of the other banks.

Latha: So are you reworking your numbers?

A: So, what we had expected was that their rules will be the same as a bank because now they are a bank more than a Non-bank financial company (NBFC).

Latha: So, you're not disappointed?

A: No, we aren't.

Ekta: So, you wouldn't be changing your estimates on account of this, what would your estimates in terms of return on equity (ROEs) be?

A: So, our (ROEs) are rising in terms of it transferring to a bank and that's mainly because they can take up higher leverage and as a result while return on assets (ROAs) might temper down a bit, the (ROEs) will actually expand mainly because of the leverage factor.

IDFC stock price

On January 29, 2015, IDFC closed at Rs 172.20, up Rs 1.55, or 0.91 percent. The 52-week high of the share was Rs 177.80 and the 52-week low was Rs 88.10.

The company's trailing 12-month (TTM) EPS was at Rs 10.10 per share as per the quarter ended December 2014. The stock's price-to-earnings (P/E) ratio was 17.05. The latest book value of the company is Rs 92.92 per share. At current value, the price-to-book value of the company is 1.85.

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SKS Microfinance plans to set up small bank; Q3 net doubles

SKS Microfinance reported nearly two-fold increase in net profit at Rs 41.1 crore for October-December quarter and also said it will seek licence from RBI for setting up a small finance bank.

SKS Microfinance  reported nearly two-fold increase in net profit at Rs 41.1 crore for October-December quarter and also said it will seek licence from RBI for setting up a small finance bank.

The city-headquartered micro lender said its board of directors has approved a proposal to apply for small finance bank licence. "The board of directors of SKS Microfinance approved the company's proposal for making an application to the Reserve Bank of India for grant of a small finance bank licence," the only-listed microfinance institution in the country said in a statement. 

Meanwhile, the company said its profit after tax for the quarter ended December 31, 2014 stood at Rs 41.1 crore as against Rs 21.4 crore in the same period last year. The net interest income was at Rs 96 crore during the quarter under discussion, up from Rs 68 crore in Q3 FY14. Its portfolio, excluding Andhra Pradesh and Telangana, their key markets, registered a 35 percent year-on-year increase to Rs 3,195 crore from Rs 2,364 crore in Q3 FY14 (5 percent quarter-on-quarter growth from Rs 3,043 crore in Q2 FY15)," SKS said.

In the October-December period, loan disbursements stood at Rs 1,544 crore, up from Rs 1,399 crore in the third quarter of 2013-14. As of December 31, 2014, SKS Microfinance had a net worth of Rs 998 crore and capital adequacy of 34.6 percent (without the RBI dispensation on the Andhra Pradesh and Telangana provisioning). Cash and cash equivalents stood at Rs 746 crore.

The un-availed deferred tax benefit of Rs 506 crore will be available to offset tax on future taxable income, the statement added.

SKS Microfin stock price

On January 29, 2015, SKS Microfinance closed at Rs 436.15, up Rs 10.20, or 2.39 percent. The 52-week high of the share was Rs 475.75 and the 52-week low was Rs 169.30.

The company's trailing 12-month (TTM) EPS was at Rs 12.26 per share as per the quarter ended December 2014. The stock's price-to-earnings (P/E) ratio was 35.58. The latest book value of the company is Rs 37.84 per share. At current value, the price-to-book value of the company is 11.53.

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Maran, Kal Air to sell entire SpiceJet stake to Ajay Singh

The low-cost airline plans to allot 37 lakh non-convertible preference shares to Marans and Kal Airways. These shares will be issued at Rs 1000 per share.

Moneycontrol Bureau

Crisis-hit  SpiceJet on Friday morning announced that Kalanithi Maran and Kal Airways plan to sell their entire equity to its new promoter Ajay Singh.

The low-cost airline plans to allot 37 lakh non-convertible preference shares to Marans and Kal Airways. These shares will be issued at Rs 1000 per share.

SpiceJet also plans to raise up to Rs 1,500 crore through issues of various securities.

Maran, his wife Kaveri, and Managing Director S Natrajhen have resigned from the SpiceJet board.

The budget-carrier on Wednesday joined the low-fare race in the domestic market when it put on block half a million seats with ticket prices starting at Rs 1,499 under a limited period promotional offer. SpiceJet later announced that on day one itself, booking volumes quadrupled (increased by 4X or 400 percent), indicating continuing pent up demand in the market despite other airlines having held sales earlier this month.

Meanwhile, the beleaguered aviation company is eagerly awaiting the second tranche of investment to the tune of Rs 400 crore on February 15. Singh and a consortium of investors has promised a total of Rs 1500 crore investment in the cash strapped airline in tranches.

SpiceJet stock price

On January 29, 2015, SpiceJet closed at Rs 22.20, up Rs 0.40, or 1.83 percent. The 52-week high of the share was Rs 24.10 and the 52-week low was Rs 11.10.

The latest book value of the company is Rs -16.49 per share. At current value, the price-to-book value of the company was -1.35.

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Airtel payment bank will help 'reach the unbanked': Kotak

Bharti Airtel will sell 19.9 percent stake in Airtel M Commerce services to Kotak Mahindra Bank. In an interview to CNBC-TV18's Latha Venkatesh, Deepak Gupta, joint MD, Kotak Mahindra Bank, spoke about the deal.

It is first play into a totally new customer segment, the inclusive customer segment. As a standalone bank it is practically impossible to reach out to that mass in the market place.

Dipak Gupta

JMD

Kotak Mahindra Bank

Airtel M Commerce services, a wholly owned subsidiary of Bharti Airtel , has decided to convert its existing prepaid payment service into a payments bank by applying for a license with the Reserve Bank of India.

Bharti Airtel will also sell 19.9 percent stake in Airtel M Commerce services to Kotak Mahindra Bank . Airtel M Commerce currently offers mobile money services under the brand name Airtel Money.

In an interview to CNBC-TV18's Latha Venkatesh, Deepak Gupta, joint MD, Kotak Mahindra Bank, spoke about the deal.

Edited excerpts from the interview on CNBC-TV18.

Q: Are you paying something for this 19.9 percent stake? What will it be?

A: We are investing in that company. There is an existing company which has a PPI license, it is an RBI approved PPI. We are investing in it and that company will apply for a payment bank.

Q: That investment, what does it cost you?

A: We have not disclosed that.

Q: How do you expect this joint venture to benefit Kotak Mahindra Bank?

A: It is first play into a totally new customer segment, the inclusive customer segment. As a standalone bank it is practically impossible to reach out to that mass in the market place.

If you look at Airtel, it has phenomenal reach, particularly if you look at the rural pockets, the unbanked segments. They have an existing reach, so it is a great way to reach out to a wider inclusive segment.

Bharti Airtel stock price

On January 29, 2015, Bharti Airtel closed at Rs 372.75, down Rs 2.4, or 0.64 percent. The 52-week high of the share was Rs 419.90 and the 52-week low was Rs 282.10.

The company's trailing 12-month (TTM) EPS was at Rs 27.40 per share as per the quarter ended September 2014. The stock's price-to-earnings (P/E) ratio was 13.6. The latest book value of the company is Rs 166.93 per share. At current value, the price-to-book value of the company is 2.23.

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Adani Enterprises recast; port, power biz shifted to arms

Moneycontrol Bureau

Adani Enterprises —the flagship of the USD 9.4 billion Adani Group—Friday  announced a complex restructuring of its various businesses in an attempt to simplify its corporate structure.

Under the terms of the recast, Adani Enterprises (AEL) port business will be transferred to subsidiary Adani Ports and Special Economic Zone , its power businesses to Adani Power (APL), and transmission business to unlisted Adani Transmissions, which will subsequently be listed.

Also, Adani Mining Private Limited (AMPL), a wholly owned subsidiary of AEL is proposed to be merged into AEL. 

The scheme is subject to approvals from the stock exchanges, Sebi, shareholders, creditors and the Gujarat High Court.

Once approved, this is what the share swap ratio will be for each of the transfers:

Adani Ports to issue 14123 shares for every 10000 shares of Adani Enterprises
 
Adani Power to issue 18596 shares for every 10000 shares in Adani Enterprises

Adani Transmission to issue one share for every one share in Adani Enterprises

Following are the highlights of the restructuring:
(Excerpts from the press release)

* Demerger of the Port Undertaking of AEL comprising the undertaking, businesses, activities, operations, assets (moveable and immoveable) and liabilities pertaining to the Belekeri port and the investment of AEL in APSEZ into APSEZ;

* Demerger of the Power Undertaking of AEL comprising the undertaking, businesses, activities, operations, assets (moveable and immoveable) and liabilities pertaining to the 40MW solar power project at Bitta village, Kutch district of Gujarat and the investments of AEL in APL into APL;

* Demerger of the Transmission Undertaking of AEL comprising the undertaking, businesses, activities, operations, assets (moveable and immoveable) and liabilities related to the Mundra-Zedra transmission line and the investment of AEL in ATL into ATL;

* Merger of AMPL into AEL

The restructuring will become effective from April 1, 2015, the company said in its release.

"The scheme of arrangement will simplify corporate structure providing the shareholders of AEL direct shareholding in the respective operating companies, listing of one of the largest private sector transmission companies with over 5,000 circuit kms of transmission lines across Western, Northern and Central regions of India and increase free float at APL and APSEZ," the company release said.
 
The company further said Adani Transmission was in the process of acquiring 100 per cent of the outstanding equity share capital of Adani Transmission (India) (ATIL) from APL and Adani Power Maharashtra Limited (APML, a wholly owned subsidiary of APL). ATL is also in the process of acquiring 100% of the outstanding equity share capital of Maharashtra Eastern Grid Power Transmission Company Ltd. (MEGPTCL) from AEL, the company said. 

Adani Enterpris stock price

On January 29, 2015, Adani Enterprises closed at Rs 629.50, up Rs 45.50, or 7.79 percent. The 52-week high of the share was Rs 646.00 and the 52-week low was Rs 210.40.

The company's trailing 12-month (TTM) EPS was at Rs 2.48 per share as per the quarter ended September 2014. The stock's price-to-earnings (P/E) ratio was 253.83. The latest book value of the company is Rs 91.24 per share. At current value, the price-to-book value of the company is 6.90.

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Section of Coal India unions oppose stake sale, may strike

A day after the government decided to sell up to 10 percent stake in Coal India Ltd, some of trade unions the PSU today said they are opposed to the move and may hold strike later.

A day after the government decided to sell up to 10 percent stake in Coal India  Ltd, some of trade unions the PSU today said they are opposed to the move and may hold strike later.

The government will sell up to 10 percent stake in CIL through offer for sale tomorrow.

"We oppose the government's move and we may go for strike," said Baij Nath Rai of Bharatiya Mazdoor Sangh (BMS) told PTI.

"We have already launched protest, demonstration, rallies etc. What else?," he added.

Rai said the National Executive meeting of BMS is scheduled for early next month in Bhopal and it will take a decision on how to respond to the government.

Nathulal Pandey, president of HMS-affiliated Hind Khadan Mazdoor Federation said the union opposes the government's move in a very strong manner.

"This is intolerable and the government should have consulted us before any such move," he said.

"We may go for work-to-rule," Pandey added.

The government may raise raise around Rs 24,000 crore from the stake sale in PSU.

Nearly five lakh coal workers went on a strike early this month after five major trade unions, including BJP-backed Bharatiya Mazdoor Sangh, gave a call for the biggest ever industrial action in four decades against what they called attempts for "disinvestment in Coal India and denationalisation of coal mining".

Coal workers however called off their 5-day nationwide strike after two days following the intervention of the government.

The government had said then that CIL trade unions have assured it if trying to make up for the loss in production of about 1 million tonnes on account of the strike.

The government had said that the unions have also assured complete cooperation in the future as well.

Coal India stock price

On January 29, 2015, Coal India closed at Rs 375.15, down Rs 8.9, or 2.32 percent. The 52-week high of the share was Rs 423.85 and the 52-week low was Rs 240.50.

The company's trailing 12-month (TTM) EPS was at Rs 21.06 per share as per the quarter ended September 2014. The stock's price-to-earnings (P/E) ratio was 17.81. The latest book value of the company is Rs 26.04 per share. At current value, the price-to-book value of the company is 14.41.

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2014 saw most number of PE deals in last decade: Thornton

According to the third edition of Grant Thornton's 'The Fourth Wheel' -- a publication on PE in India produced in association with IVCA, PE investment in India is growing steadily since 2009, and stood at over USD 12 billion in 2014 alone.

The year 2014 saw 604 private equity deals, the highest number of transactions in the past decade, on the back of increase in investments in technology enabled consumer space including e-commerce, says a report.

According to the third edition of Grant Thornton's 'The Fourth Wheel' -- a publication on PE in India produced in association with IVCA, PE investment in India is growing steadily since 2009, and stood at over USD 12 billion in 2014 alone. "Today dynamic companies seek private equity funding not just for capital but the significant value addition they bring to the business and their ability to drive growth and value," Grant Thornton India LLP Partner Harish HV said.

He said: "PE players are in the forefront of creating new businesses particularly in the tech and e-commerce space, which is making some fundamental changes in the way business and economy function."

The report said that IT&ITES has attracted maximum investments worth USD 13 billion from over 900 deals in the last decade, followed by banking and financial services and pharma sector with 331 and 298 deals respectively. Furthermore, e-commerce topped the PE investment charts in 2014 and the wave is expected to result in consolidation trends in 2015 within the segment. The report says that IT/ITES and retail & consumer sectors will continue to see upward trend while banking and financial services (BFS), real estate and infrastructure (REI) and pharmaceuticals are expected to be attractive opportunities in 2015.

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Coal India OFS floor price at Rs 358/sh; at 4.5% discount

The government on Thursday set the floor price of Coal India at Rs 358/share for an offer for sale (OFS) in which it plans to sell 5 percent stake in the firm.

Moneycontrol Bureau

The government on Thursday set the floor price of Coal India  at Rs 358/share for an offer for sale (OFS) in which it plans to sell 5 percent stake in the firm.

The share closed at Rs 374 today, implying a 4.5 percent discount from the last closing price.

The government added that it may sell another 5 percent in the issue via the greenshoe option. A greenshoe option endows the issuer with an option of selling additional stake in case there is enough demand.

A 5 percent stake sale would fetch the government close to Rs 11,300 crore; and double that in case the full 10 percent stake goes through.

Coal India shares have feel about 4 percent from a peak of about Rs 400 in the past few days amid news flow that the issue was coming soon. There were reports today that said the government has asked regulator Sebi to keep its guard up to see if there is any manipulation in the counter.

"The issue is in line with our expectations. It provides a good opportunity for investors to invest in the largest coal mining company in the world at a discount [to market price]," stock broker Deven Choksey of KR Securities told CNBC-TV18. "Institutional investors will likely be keen to apply."

Coal India, which has a virtual monopoly on coal mining in the country, is a fundamentally sound company and with the government pledging to double its production by 2019, the stock makes for a good long-term investing opportunity, Choksey added.

However, Taran Bhanushali, AVP – Research, IIFL, said the stock may underperform from tomorrow onward, and may test Rs 360 levels, where it may stabilize.

Coal India stock price

On January 29, 2015, Coal India closed at Rs 375.15, down Rs 8.9, or 2.32 percent. The 52-week high of the share was Rs 423.85 and the 52-week low was Rs 240.50.

The company's trailing 12-month (TTM) EPS was at Rs 21.06 per share as per the quarter ended September 2014. The stock's price-to-earnings (P/E) ratio was 17.81. The latest book value of the company is Rs 26.04 per share. At current value, the price-to-book value of the company is 14.41.

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Rs 7,500cr rights issue proceeds to go for CV launch: TaMo

Tata Motors  intends to utilise Rs 7,500 crore, which it plans to raise via a rights issue, to fund various activities, including introduction of more than 100 new commercial vehicles over the next three years and passenger vehicles on a new modular platform from FY 2016-17.

The company, which is seeking shareholders' approval through postal ballot for raising funds up to Rs 7,500 crore through a rights issue of ordinary shares, also intends to use the funds to expand in international markets.

"The rights issue proceeds are expected to be utilised to finance a portion of the ongoing capital expenditure, including product development expenses; invest in subsidiaries to support future growth opportunities in India and abroad," Tata Motors said in a filing to the BSE.

The funds would also be used to strengthen capital structure by deleveraging the balance sheet to build financial flexibility; partly correct the accumulated mis-match between the long term sources and application of funds; meet issue expenses; and general corporate purposes, it added.

Elaborating on the new product development plans in the commercial vehicle (CV) space, the company said major actions planned include "over 100 new products/ variants for domestic and international markets over the next three years, launch of the Ultra range of trucks and broadening the Prima portfolio for market competitiveness."

Besides, the company is looking to develop a product portfolio in the passenger vehicles segment until 2020, with the introduction of two or three new products each year.

Other initiatives planned include eight improved and enhanced vehicles across five key brands over the next two or three years and "products offered on a new modular platform from FY 2016-17".

The company is also looking to enhance the purchase experience at dealerships and improved service quality.

The Mumbai-based company is also looking to add more than 40 new products over the next five years in the Jaguar Land Rover (JLR) business.

Further, it aims to increase the JLR manufacturing capacity in the UK, expand operations in China, Brazil and potentially other markets and de-risk the business by setting up its own engine plant in the UK.

Besides, the company is looking at expansion of commercial and passenger vehicle operations in Thailand, Indonesia and South Korea as well as penetration of new export markets for India business, including Australia, Philippines and Vietnam.

Tata Motors shares were trading 0.23 per cent up at Rs 590.50 apiece during afternoon session on the BSE.

Tata Motors stock price

On January 29, 2015, Tata Motors closed at Rs 597.50, up Rs 8.35, or 1.42 percent. The 52-week high of the share was Rs 608.40 and the 52-week low was Rs 331.05.

The latest book value of the company is Rs 59.58 per share. At current value, the price-to-book value of the company was 10.03.

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Kotak Mahindra to buy 19.9% in Airtel m-Commerce

The subsidiary of Bharti Airtel is also in the process of applying for payment bank license to the Reserve Bank of India (RBI).

Moneycontrol Bureau

Kotak Mahindra Bank  will acquire 19.9 percent in Bharti Airtel 's arm, Airtel m-Commerce Services Limited (AMSL). The subsidiary of Bharti Airtel is also in the process of applying for payment bank license to the Reserve Bank of India (RBI).

"AMSL, a wholly owned subsidiary of Bharti Airtel, has decided to seek conversion of its existing pre-paid payment Instrument license into a Payments Bank License from RBI pursuant to the payments banks guidelines issued by the RBI," the telecom service operator said in a statement to the exchange.

AMSL offers mobile money service under the brand name Airtel Money. 

Dipak Gupta, Joint Managing Director, Kotak Mahindra Bank said, "Payment banks have the potential to leapfrog India's financial inclusion agenda. Basic but critical services such as small savings accounts, remittances, etc. will bring a large number of low income households and small businesses under the formal banking network."

Airtel Money, launched in 2011 was the first mobile based pre-paid payment instrument service in the country and today empowers millions across India to leverage their mobile phones as a secure way for making payments and transferring money.   

Shares of Bharti Airtel closed at Rs 375.15, up Rs 1.40, or 0.37 percent while Kotak Mahindra Bank was at Rs 1,330.05, down Rs 21.45, or 1.59 percent on the BSE.

Kotak Mahindra stock price

On January 29, 2015, Kotak Mahindra Bank closed at Rs 1330.05, down Rs 21.45, or 1.59 percent. The 52-week high of the share was Rs 1440.00 and the 52-week low was Rs 630.80.

The company's trailing 12-month (TTM) EPS was at Rs 22.62 per share as per the quarter ended December 2014. The stock's price-to-earnings (P/E) ratio was 58.8. The latest book value of the company is Rs 159.07 per share. At current value, the price-to-book value of the company is 8.36.

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Yet to finalise on product made from Gujarat plant: Maruti

Gujarat's chief minister Anandiben Patel today performed the ground-breaking ceremony for auto major Maruti Suzuki's plant in Hansalpur in Gujarat. The manufacturing facility, which is likely to start production by mid-2017, will have an initial capacity of 2,50,000 units a year.

Gujarat's chief minister Anandiben Patel today performed the ground-breaking ceremony for auto major Maruti Suzuki 's plant in Hansalpur in Gujarat. The manufacturing facility, which is likely to start production by mid-2017, will have an initial capacity of 2,50,000 units a year.

Discussing the company's plans for the Gujarat plant, Maruti Suzuki Chairman RC Bhargava, said though the products to be made from the plant have not yet been finalized, the basic thing is that production between Gujarat and Manesar and Gurgaon has to be planned so as to optimise the cost and the logistical cost of the production.

"We will have to look at what the market is likely to be in 2017-2018 and 2018-2019 and on that basis decide what should be produced where," he said.

Maruti Suzuki stock price

On January 28, 2015, Maruti Suzuki India closed at Rs 3724.75, up Rs 39.55, or 1.07 percent. The 52-week high of the share was Rs 3758.00 and the 52-week low was Rs 1541.25.

The company's trailing 12-month (TTM) EPS was at Rs 106.83 per share as per the quarter ended December 2014. The stock's price-to-earnings (P/E) ratio was 34.87. The latest book value of the company is Rs 694.45 per share. At current value, the price-to-book value of the company is 5.36.

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Govt not to appeal against Bombay HC order in Vodafone case

Moneycontrol Bureau

In a relief to telecom operator Vodafone, the Cabinet Committee on Economic Affairs (CCEA) Wednesday decided not to appeal against a Bombay HC order that Vodafone was not liable to pay tax demand of Rs 3,200 crore in a transfer pricing case.

"The government will not appeal the judgement of Bombay High Court in the Vodafone case," said Telecom minister Ravi Shankar Prasad post the Union Cabinet meeting.

The minister also said that the CCEA decision on Vodafone case will increase investor confidence. According to him, finance minister Arun Jaitley took inputs from Central Board of Direct Taxes (CBDT), AG, SG on the Vodafone transfer pricing issue. 

The decision of not filing an appeal in the Vodafone case was taken at the highest level following advice by Attorney General Mukul Rohatgi.

The I-T Department had asked the company to pay additional income tax alleging that it had undervalued its shares in subsidiary, Vodafone India Services while transferring them to the parent company in Britain.

What experts say

Anuradha Dutt, Vodafone Counsel believes the Cabinet's decision to not appeal the Bombay HC ruling is a positive move and will certainly help in boosting investment. According to her, the government's decision must be an indicator for other high courts in the country. She said Cabinet's view could weaken taxman's argument in other transfer pricing cases.

Dutt further said that government and Vodafone are in the process of appointing arbitrators for the retro tax dispute. Also, Prime Minister Narendra Modi assured just two days ago that there will be a change in the tax regime, she added.

Concurring the view, advocate Harish Salve welcomed Cabinet's move saying he is happy that government has taken a firm decision on Vodafone case.

"I hope a larger message goes through to the tax department that their attempts to attack foreign companies as though they have some trophies to be won is not now being appreciated by the administration," he added.

Salve said the Cabinet decision was a good enough message to indicate that this government will not behave like previous governments and will take firm actions going ahead. 

(With inputs from PTI)

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Govt agrees upon Rs 3705cr base price for 3G spectrum

The Cabinet has decided on a reserve price of Rs 3705 crore per Mhz for the 2100 Mhz band for the upcoming spectrum auctions, telecom minister Ravi Shankar Prasad said here today.

Moneycontrol Bureau

The Cabinet has decided on a reserve price of Rs 3705 crore per Mhz for the 2100 Mhz band for the upcoming spectrum auctions, telecom minister Ravi Shankar Prasad said here today.

At a press conference, the minister said the government had decided to accepted the Telecom Commission's recommendation to price the 3G spectrum at that price, 36 percent higher than suggested by the Telecom Regulatory Authority of India (TRAI).

"We have taken the market-discovered price, based on the auction price during the 2010 auction [when 2,100 Mhz spectrum was last sold]," the telecom minister said.

Based on the above, it should translate into revenues of Rs 18,500 crore for the government considering it has decided to put up 5 Mhz of airwaves on the block.

Besides the 2100 Mhz band, the government will auction 103.75 Mhz of spectrum in the 800 Mhz band, 177.8 Mhz in the 900 Mhz wavelength and 99.2 Mhz of 1,800 Mhz spectrum, in an auction that is expected to garner anywhere between Rs 80,000 crore and Rs 1 lakh crore for the state kitty.

Prasad added that over and above this, the government has identified 40 bands in the 3 Mhz-4Mhz space and 31 bands will be released by the defence services, and which will be co-exist with other users of spectrum such as civil aviation etc.

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SBH plans to raise upto Rs 400 cr via tier-II bonds this FY

We are very sure our capital adequacy rate will be maintained in the range of 11.25 to 11.50 per cent which is higher than the benchmark of 11 per cent mandated by our board and also RBI prescription, says SBH Managing Director Santanu Mukherjee.

Public sector lender State Bank of Hyderabad (SBH) may raise up to Rs 400 crore before end of the current fiscal by way of tier-II bonds to meet the future credit demand, said SBH Managing Director Santanu Mukherjee.

"We might raise tier-II bonds before March of this financial year. We plan to raise Rs 350 crore to Rs 400 crore.

Exact figure depends on market conditions and requirement," Mukherjee told reporters last night after announcing the third quarter results. "As of now it does not look like we may need tier-I capital this year or even next year.

We are very sure our capital adequacy rate will be maintained in the range of 11.25 to 11.50 per cent which is higher than the benchmark of 11 per cent mandated by our board and also RBI prescription.

However, it all depends on the credit growth and demand," the banker said when asked about immediate capital requirements. SBH's net profit more than doubled to Rs 334 crore during the third quarter ended December 31, 2014, compared to Rs 119 crore in the corresponding quarter of the previous year.

The bank has shed over Rs 12,500 crore worth of high cost deposits during the quarter resulting in increase its Net Interest Margin.

Mukherjee said though the shedding may result in pressure on the liquidity position, the bank is trying to fill the gap by improving low cost deposits such as Current and Savings Account (CASA). "We have got low cost deposits in the form of CASA by around Rs 7,000 crore. Apart from that, we have been aggressively following up for retail deposits.

We have launched some important schemes also for that. These (moves) helped up to come out of the clutches of high cost deposits. We are able to manage it quite well," he said.

The bank's CASA deposits grew by 13.17 per cent to Rs 33,055 crore during the quarter ended December 31. Replying to query, he said the growth in the credit demand may be in the range of 17 to 18 per cent in the coming fiscal.

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CCEA OKs HDFC Bk's proposal to raise up to Rs 10k cr: Srcs

The Foreign Investment Promotion Board had cleared HDFC Bank's proposal in December and had cleared Lupin's FDI proposal in November.

The Cabinet Committee on Economic Affairs (CCEA) has okayed HDFC Bank 's proposal to raise up to Rs 10,000 crore, sources tell CNBC-TV18. The committee is also learnt to have given its nod to  Lupin 's proposal to increase FDI limit to 49 percent.

The Foreign Investment Promotion Board had cleared HDFC Bank's proposal in December and had cleared Lupin's FDI proposal in November.

Calling the move a positive one, Jignesh Shial, Research Analyst, IDBI Capital Markets, said the decision will come as further boost for the bank and ease its hurdle on the capital front.

"Overall we can say this was a hangover, this was probably a problem that the stock was facing and that is why it was consolidating for long and management was expecting it to get cleared. So, this will be a positive boost for the bank as such," he said.

HDFC Bank stock price

On January 28, 2015, HDFC Bank closed at Rs 1058.10, down Rs 15.9, or 1.48 percent. The 52-week high of the share was Rs 1093.00 and the 52-week low was Rs 618.00.

The company's trailing 12-month (TTM) EPS was at Rs 38.33 per share as per the quarter ended September 2014. The stock's price-to-earnings (P/E) ratio was 27.61. The latest book value of the company is Rs 179.87 per share. At current value, the price-to-book value of the company is 5.88.

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Ranbaxy forfeits 180 days exclusivity for stomach drugs

Drug major Ranbaxy today said that the US health regulator has "determined" that the Indian drug manufacturer has forfeited its 180 days exclusivity for stomach and esophagus problems treatment tablets.

Drug major Ranbaxy  today said that the US health regulator has "determined" that the Indian drug manufacturer has forfeited its 180 days exclusivity for stomach and esophagus problems treatment tablets.

"We have now received a communication from US FDA that they have determined that Ranbaxy has forfeited its 180 days exclusivity for esomeprazole magnesium delayed-release capsules," the company said in a BSE filing.

Esomeprazole is used for treatment of certain stomach and esophagus problems such as acid reflux and ulcers. 

Ranbaxy said it "is disappointed with the result and is pursuing all available legal options to preserve its rights."

In November 2014, US FDA revoked its tentative approvals for Ranbaxy's generic anti-viral drug valganciclovir hydrochloride and esomeprazole magnesium delayed-release capsules 20 mg and 40 mg.

In November, the communication from US Food and Drug Administration (USFDA) said that Ranbaxy's abbreviated new drug application (ANDAs) of concern did not have any data integrity issues.

However it added that "its original decisions granting tentative approvals were in error because of the compliance status of the facilities referenced in the ANDAs at the time the tentative approvals were granted."

Shares of Ranbaxy were trading at Rs 700.15 apiece, down 0.86 per cent from its previous close on the BSE.

Ranbaxy Labs stock price

On January 27, 2015, Ranbaxy Laboratories closed at Rs 706.90, up Rs 0.65, or 0.09 percent. The 52-week high of the share was Rs 714.20 and the 52-week low was Rs 306.05.

The company's trailing 12-month (TTM) EPS was at Rs 20.91 per share as per the quarter ended September 2014. The stock's price-to-earnings (P/E) ratio was 33.81. The latest book value of the company is Rs 25.82 per share. At current value, the price-to-book value of the company is 27.38.

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Johnson to buy 25.74% stake in Hitachi via open offer

Johnson Controls said it would acquire little over 70,00,990 shares at an offer price of Rs 821.38 per share amounting to Rs 575.04 crore

Johnson Controls plans to acquire 25.74 percent stake in  Hitachi Home & Life Solutions (India) Ltd through an open offer for an estimated price of Rs 575 crore.

In a public announcement to Hitachi's shareholders, Johnson Controls said it would acquire little over 70,00,990 shares at an offer price of Rs 821.38 per share amounting to Rs 575.04 crore.

In a BSE filing, the company has proposed to launch open offer to acquire "up to 70,00,990 fully paid-up equity shares of face value of Rs 10 each of the target company representing 25.74 percent of fully diluted voting equity share capital."

Last week, Johnson Controls and Hitachi Appliances had entered into a definitive agreement to form a global joint venture (JV) for heating, air conditioning, ventilation and refrigeration (HVAC).

Post completion of the open offer, the JV company, either directly or through one or more subsidiaries, will hold 74.25 percent of the target company, the company added. As per the agreement, Johnson Controls will obtain a 60 percent ownership in Hitachi Appliances. The deal excludes sales and service operations in Japan.

Hitachi Appliances will continue to provide Hitachi branded HVAC products in the Japanese market after this transaction, the company said in a statement.

The transaction is expected to close later this year, subject to regulatory approvals and satisfaction of other customary conditions.

Hitachi Home stock price

On January 27, 2015, Hitachi Home & Life Solutions closed at Rs 1144.35, up Rs 8.55, or 0.75 percent. The 52-week high of the share was Rs 1307.00 and the 52-week low was Rs 129.05.

The company's trailing 12-month (TTM) EPS was at Rs 19.51 per share as per the quarter ended September 2014. The stock's price-to-earnings (P/E) ratio was 58.65. The latest book value of the company is Rs 88.27 per share. At current value, the price-to-book value of the company is 12.96.

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Max India demerger gets nod; co to be renamed Max Fin Srvs

The existing company Max India will be renamed Max Financial services and the other two businesses will be listed post the demerger.

The  Max India board today approved the company's corporate restructuring plan that will result in a three-way split. The existing company Max India will be renamed Max Financial Services and the other two businesses will be listed post the demerger.

The first resulting company post the demerger will be named Max India and will manage the investments in health & allied business. The second company will be named Max Ventures and will house the investment activity in the group's manufacturing arm.

The three separate business verticals would look into life insurance, health and allied businesses, and manufacturing industries.

Further the promoter of the Max India Analjit Singh announced his intention to make voluntary open offer to buy up to an additional 34.5 per centstake in Max Ventures and
Industries Ltd which will be listed post the demerger of Max India.

The company's cash reserves of Rs 605 crore will be split between the three listed companies and Max India will sell its clinical research business for USD 1.5 million to Canadian company JSS Medical.

Here's how the stocks will be split:

An investor will get one share in the demerged Max India for every share held. For every five Max India shares held, an investor will get one share in Max Ventures.

The appointed date for the demerger is April 1, 2015.

Nidhesh Jain of Espírito Santo believes the demerger is a positive on many fronts. He believes the demerger will allow investors get exposure to pure life insurance play as Max India is the only listed life insurance company.

Furthermore, he believes the divestment of Max' clinical research business is important as nobody on the street was giving any valuation to that entity and that will change now.

And lastly, Jain believes the demerger assures investors on the capital allocation strategy of the company.

"Post this demerger they deliver a clear segregation among these three major verticals. This will allay the investors fears. So, investor who wants to take exposure to life insurance can now take the exposure which was not available earlier," he adds.

(With inputs from PTI)

Max India stock price

On January 27, 2015, Max India closed at Rs 492.75, up Rs 38.20, or 8.40 percent. The 52-week high of the share was Rs 505.00 and the 52-week low was Rs 177.60.

The company's trailing 12-month (TTM) EPS was at Rs 5.70 per share as per the quarter ended September 2014. The stock's price-to-earnings (P/E) ratio was 86.45. The latest book value of the company is Rs 119.57 per share. At current value, the price-to-book value of the company is 4.12.

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See Rs 1k-cr revenues over 3 yrs via new launches: Sunteck

Mumbai-based real estate company Sunteck Realty , which caters to ultra luxury & luxury residential segment, is planning to launch four new projects in areas like Borivali, Andheri, BKC and Navi Mumbai, this quarter.

Speaking to CNBC-TV18, Kamal Khetan, CMD of Sunteck Realty, said the new launches have revenue potential of Rs 1000 crore over 3 years. The company has achieved 10-20 percent pre-sales of two projects, he added.

Meanwhile, it is learnt that private equity investor Ashish Dhawan (founder & CEO) has bought a little over 1 percent stake in the company. Dhawan has made the purchase in his individual capacity and not in ChrysCapital's account.

Below is the transcript of Kamal Khetan's interview with Reema Tendulkar and Ekta Batra on CNBC-TV18.

Ekta: We do understand that you are looking or are ready to launch four new projects in Mumbai this quarter itself. Can you take us through what these projects are, have you done any sort of presales in it already, where do they stand?

A: These four projects that we are launching is one is Signia High in Borivali, which is close to 3,50,000 sq ft. Another one is Signia Orion which is in Navi Mumbai that is close to 3 lakh sq ft and then we have one commercial project which is coming up in Bandra-Kurla Complex (BKC) Annexe, which is close to one lakh sq ft and the fourth project that we are planning to launch is in Andheri-Kurla road which is called Signia Pride which is close to 60,000 sq ft. So all put together, four projects is equivalent to one million sq ft and the revenue that we are expecting from four projects, it is approximately close to Rs 1,000 crore.

Reema: This Rs 1,000 crore of revenue potential will be spread out over how many years and purely in FY16, how much of this Rs 1,000 crore you can generate?

A: Rs 1,000 crore revenue we are looking to complete this project over a period of three years and in FY16 at least we are looking to target to at least sales from this project on the conservative side, 50 percent of the inventory from these projects.

Ekta: You have already launched these projects but do you have anything where you are already generating any sort of sales or completion of sales that you can tell us about, your current projects onstream?

A: These projects we are launching and some of the presale definitely we have done. That is not much that is 10-20 percent of it.

Ekta: 10-20 percent of all four projects or will it be just one project. Can you tell us what the presale is?

A: We have done some presales in two projects that is Signia High and Signia Orion which is in Borivali and Navi Mumbai and we are close to sold the inventory close to 20-25 percent.

Reema: Are the new launches coming in at higher realisations and if yes, by how much compared to a year ago?

A: Definitely the new launches are definitely coming up. The new launches whatever we are doing in this new launch, the rates are definitely going up and we can see that there is an uptick. People are looking at where the track record, definitely there is -- if you see a good track record of a developer and if the developer is lower leveraged then underconstruction sales have started picking up and that is what we are seeing with us as well.

Ekta: How are you funding these four projects, any sort of debt that you are taking on, any partners?

A: We have been following very prudent method. Whenever we require, we take construction finance but we are expecting a lot of cash flow generation from the presales itself. So we don't see much of the debt. If required, we will go for some construction finance from hereon. Overall, there are 11 projects and out of the 11 projects, we have completed five projects and six projects are under construction. When we add these another four projects, so again there will be close to 11 projects. So the revenues that we will see from all total 11 projects, it will be not restricting to these four projects. 

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SpiceJet to get second tranche of Rs 400 cr on Feb 15

SpiceJet 's new promoter Ajay Singh has invested the first tranche of Rs 100 crore over this weekend and now, the next important date in the airline's survival saga is February 15. As per the recapitalisation plan of Singh, which has been approved by the Ministry of Civil Aviation last week, three important investment related events are expected by then. Singh and a consortium of investors has promised a total of Rs 1500 crore investment in the cash strapped airline in tranches.

1) The second tranche of Rs 400 crore investment from Singh and company is slated to come in by February 15.

2) Outgoing promoters, the Marans, are expected to complete conversion of some warrants for a total sum of close to Rs 300 crore by then.

3) Additionally, the Marans are also expected to pay close to Rs 370 crore in redeemable instruments in two tranches, the first of which is due by February 15. By this date, the Marans are to pay Rs 320 crore.

This last payment could well be a sort of hair cut that has been agreed upon as a part of the transaction which will see the Marans cashing out. Singh's recapitalisation plan has been approved with these timelines but it remains to be seen if they are met, given extraneous challenges which abound for the incoming promoters.

To begin with, the crucial decision of market regulator Sebi about waiving an open offer for the acquisition of over 58 percent stake by Singh and his consortium from Marans is still pending. The ministry's approval is merely for a change of management and is anyway subject to the acquirers adhering to FIPB/DIPP norms in respect of foreign airline investment. It is also subject to incoming directors on the airline's board getting Home Ministry clearances for security. But it says nothing about whether an open offer by the incoming promoters can be waived - that decision has been left to Sebi.

Secondly, the airline has total liabilities of Rs 1580 crore and creditors will need a lot of patience in the coming days to get their dues back. According to the plan cleared by the Ministry, Spicejet owes Rs 187 crore to the Airports Authority of India, Rs 89 crore to other airports, Rs 143 crore to tax authorities, Rs 653 crore to aircraft lessors and Rs 508 crore to other creditors.

Thirdly, the airline needs to rework its costs and renegotiate contracts to be able to compete in an aggressive market.

Leasing companies have already made it clear that they are not playing the patience game. In all likelihood, they will be able to repossess 11 of the 19 Boeing 737 aircraft currently flying with the airline this week. They are only waiting for a decision from the DGCA on this matter.

If that happens, SpiceJet's fleet will be severely curtailed and unless its negotiations with two other airlines for getting as many aircraft on fresh lease succeed, SpiceJet may be in a spot of trouble quickly enough.

SpiceJet stock price

On January 27, 2015, SpiceJet closed at Rs 22.60, up Rs 0.35, or 1.57 percent. The 52-week high of the share was Rs 24.10 and the 52-week low was Rs 11.10.

The latest book value of the company is Rs -16.49 per share. At current value, the price-to-book value of the company was -1.37.

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German regulator hails EMA's drugs suspension on GVK Bio

German drug regulator has welcomed the European Medicine Agency's (EMA) decision to suspend the marketing authorisation of around 700 generic drugs subjected to clinical trials by India's GVK Biosciences.

German drug regulator has welcomed the European Medicine Agency's (EMA) decision to suspend the marketing authorisation of around 700 generic drugs subjected to clinical trials by India's GVK Biosciences.

The move is being seen as the EU's determination to maintain high ethical and medical standards for approval of medicines. The EU drug regulator's announcement is also an endorsement of the Federal Institute for Drugs and Medical Devices' (BfArM) decision last month to ban the sale of 80 generic drugs on account of "substantial deficiencies" in clinical trials conducted by GVK Biosciences, the agency said in a statement. 

The German watchdog said it will take a decision shortly on whether to add more medicines to the list of banned drugs in the wake of the EMA's announcement. The agency based in Bonn had so far reviewed the marketing approvals of 176 generic drugs granted on the basis of clinical trial data provided by GVK Biosciences during the period between 2008 and 2014 and this will be extended to cover the period of 2004-2007 as recommended by the EMA, the statement said.

The EU drug regulator on Friday suspended the marketing authorisation of around 700 generic drugs on the grounds that their approvals were supported by "flawed" clinical trial data provided by the Indian company. 

It urged the European Commission to take a legally binding decision to ban the concerned drugs unless the marketing authorisation holder submits the results of a new bio-equivalence study.

The German regulator said out of around 50 medicines banned at present, suspension of marketing authorisation could not be implemented in the case of a total of 21 medicines due to legal challenges by their manufacturers and their sales will continue until further notice. It has no information that these medicines posed any health risk for patients who continued to use them, according to the statement.

The agency had lifted the suspension of marketing approval for several medicines after their manufacturers submitted new clinical trial data.

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Twitter acquires ZipDial for an undisclosed amount

Microblogging website Twitter was in final talks to acquire mobile marketing start up and our Young Turks ZipDial. Young Turks caught up with ZipDial and Twitter to find out more about the deal value and their future plans for emerging markets.

Microblogging website Twitter  was in final talks to acquire mobile marketing start up and our Young Turks ZipDial. Young Turks caught up with ZipDial and Twitter to find out more about the deal value and their future plans for emerging markets.

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Jet seeks nod to raise $300mn through bond sale to Etihad

Jet Airways has sought the approval of shareholders to raise up to USD 300 million (about Rs 1,843 crore) through issue of securities to Etihad on a private placement basis.

Jet Airways  has sought the approval of shareholders to raise up to USD 300 million (about Rs 1,843 crore) through issue of securities to Etihad on a private placement basis.

UAE-based Etihad Airways PJSC holds 24 percent stake in the domestic carrier.

Jet Airways plans to raise up to USD 300 million through the issue of securities to Etihad, according to a postal ballot notice sent to its shareholders seeking their approval for the proposal. 

It has sought nod "to offer, issue and allot secured and/ or unsecured, listed and/or unlisted non-convertible debentures and/or subordinated debt instruments and/or other debt securities or bonds for an aggregate value of up to USD 300 million on a private placement basis to Etihad Airways...", the notice said.

During the quarter ended September 2014, Jet Airways had reported 96 percent reduction in net losses on a one-time income by way of sale of JPmiles to Etihad. The Rs 305 crore income from sale of its loyalty programme to equity partner Etihad helped Jet slash losses by 95.7 percent to Rs 43 crore.

It had reported a whopping Rs 999 crore net loss in the same period a year ago. Shares of the company closed marginally down at Rs 434.85 on the BSE.

Jet Airways stock price

On January 23, 2015, Jet Airways closed at Rs 434.85, down Rs 1.65, or 0.38 percent. The 52-week high of the share was Rs 474.95 and the 52-week low was Rs 203.50.

The latest book value of the company is Rs -196.11 per share. At current value, the price-to-book value of the company was -2.22.

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Coal scam: CBI registers fresh case against Hindalco

CBI has registered a fresh case in the coal block allocation scam against Indal (now Hindalco , Aditya Birla group) in connection with the allocation of Talabira-I coal block, twenty years ago.

The agency today carried out search operations at four places including one in Mumbai and three places in Sambalpur, Odisha after registering the case, CBI sources said. It is alleged that the coal was used by the company in an unauthorised manner in the existing power plant whereas the allocation was done for expanding the capacity of new power plant, the sources said.

The agency has also alleged that mining was started by the company wihout obtaining the mandatory permission. The sources said agency has named Indal (now Hindalco) and unknown public servants in connection with the case.

Public servants, the agency alleged, facilitated the illegal operations by not taking action against unauthorised use despite their knowledge.

Talabira-I coal block in IB valley in Odisha, with nearly 22.55 million tonnes of geological reserves, was allotted to Indal on February 25, 1994. "In continuation with their investigation into 185 coal mines across industry, the CBI has now begun its investigation into Talabira-I, a mine allocated in 1994 to the erstwhile Indal, which was later acquired by Hindalco. In this connection, the CBI carried out searches in three of the Company's sites," the Aditya Birla group spokesperson said.

The company is already facing probe in the Talabira-II coal block in which CBI has recently examined former Prime Minister Manmohan Singh, his Principal Secretary TKA Nair besides head of Aditya Birla Group Kumar Mangalam Birla.

The agency had filed a closure report in the allocation of Talabira-II which has been rejected by the Special Court which directed CBI to re-investigate the matter.

Responding to the development, Hindalco said: "As is known the CBI has been investigating coal block allocations made since 1993, under the monitoring of the Supreme Court. With regard to allocation of 15% share to Hindalco in Talabira II & III coal mine, the CBI has already filed their closure report."

"In continuation with their investigation into 185 coal mines across industry, the CBI has now begun its investigation into Talabira I, a mine allocated in 1994 to the erstwhile Indal, which was later acquired by Hindalco. In this connection, the CBI carried out searches in three of the Company's sites," it added.

Already, the Supreme Court has cancelled the allocation of 204 coal mines to all the respective companies. The mines will be auctioned as announced by the Ministry of Coal.

Hindalco stock price

On January 23, 2015, Hindalco Industries closed at Rs 144.75, up Rs 1.15, or 0.80 percent. The 52-week high of the share was Rs 198.70 and the 52-week low was Rs 96.95.

The company's trailing 12-month (TTM) EPS was at Rs 4.79 per share as per the quarter ended September 2014. The stock's price-to-earnings (P/E) ratio was 30.22. The latest book value of the company is Rs 177.87 per share. At current value, the price-to-book value of the company is 0.81.

21.03 | 0 komentar | Read More

Indian biz fantastic; one of APAC's pillar: DHL

The e-commerce boom in India has led to logistic companies making significant changes in their business models.Storyboard's editor Anant Rangaswami spoke with DHL's APAC CEO Jerry Hsu to understand how the wordl's largest logistics company is coping with that change.

The e-commerce boom in India has led to logistic companies making significant changes in their business models. Apart from additional business, the largely B2B service providers now find themselves increasingly dealing with consumers and tackling issues faced by B2C companies. Storyboard's editor Anant Rangaswami spoke with DHL's APAC CEO Jerry Hsu to understand how the world's largest logistics company is coping with that change.

Watch videos for more.

21.03 | 0 komentar | Read More

Jet seeks nod to raise $300mn through bond sale to Etihad

Jet Airways has sought the approval of shareholders to raise up to USD 300 million (about Rs 1,843 crore) through issue of securities to Etihad on a private placement basis.

Jet Airways  has sought the approval of shareholders to raise up to USD 300 million (about Rs 1,843 crore) through issue of securities to Etihad on a private placement basis.

UAE-based Etihad Airways PJSC holds 24 percent stake in the domestic carrier.

Jet Airways plans to raise up to USD 300 million through the issue of securities to Etihad, according to a postal ballot notice sent to its shareholders seeking their approval for the proposal. 

It has sought nod "to offer, issue and allot secured and/ or unsecured, listed and/or unlisted non-convertible debentures and/or subordinated debt instruments and/or other debt securities or bonds for an aggregate value of up to USD 300 million on a private placement basis to Etihad Airways...", the notice said.

During the quarter ended September 2014, Jet Airways had reported 96 percent reduction in net losses on a one-time income by way of sale of JPmiles to Etihad. The Rs 305 crore income from sale of its loyalty programme to equity partner Etihad helped Jet slash losses by 95.7 percent to Rs 43 crore.

It had reported a whopping Rs 999 crore net loss in the same period a year ago. Shares of the company closed marginally down at Rs 434.85 on the BSE.

Jet Airways stock price

On January 23, 2015, Jet Airways closed at Rs 434.85, down Rs 1.65, or 0.38 percent. The 52-week high of the share was Rs 474.95 and the 52-week low was Rs 203.50.

The latest book value of the company is Rs -196.11 per share. At current value, the price-to-book value of the company was -2.22.

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Coal scam: CBI registers fresh case against Hindalco

CBI has registered a fresh case in the coal block allocation scam against Indal (now Hindalco , Aditya Birla group) in connection with the allocation of Talabira-I coal block, twenty years ago.

The agency today carried out search operations at four places including one in Mumbai and three places in Sambalpur, Odisha after registering the case, CBI sources said. It is alleged that the coal was used by the company in an unauthorised manner in the existing power plant whereas the allocation was done for expanding the capacity of new power plant, the sources said.

The agency has also alleged that mining was started by the company wihout obtaining the mandatory permission. The sources said agency has named Indal (now Hindalco) and unknown public servants in connection with the case.

Public servants, the agency alleged, facilitated the illegal operations by not taking action against unauthorised use despite their knowledge.

Talabira-I coal block in IB valley in Odisha, with nearly 22.55 million tonnes of geological reserves, was allotted to Indal on February 25, 1994. "In continuation with their investigation into 185 coal mines across industry, the CBI has now begun its investigation into Talabira-I, a mine allocated in 1994 to the erstwhile Indal, which was later acquired by Hindalco. In this connection, the CBI carried out searches in three of the Company's sites," the Aditya Birla group spokesperson said.

The company is already facing probe in the Talabira-II coal block in which CBI has recently examined former Prime Minister Manmohan Singh, his Principal Secretary TKA Nair besides head of Aditya Birla Group Kumar Mangalam Birla.

The agency had filed a closure report in the allocation of Talabira-II which has been rejected by the Special Court which directed CBI to re-investigate the matter.

Responding to the development, Hindalco said: "As is known the CBI has been investigating coal block allocations made since 1993, under the monitoring of the Supreme Court. With regard to allocation of 15% share to Hindalco in Talabira II & III coal mine, the CBI has already filed their closure report."

"In continuation with their investigation into 185 coal mines across industry, the CBI has now begun its investigation into Talabira I, a mine allocated in 1994 to the erstwhile Indal, which was later acquired by Hindalco. In this connection, the CBI carried out searches in three of the Company's sites," it added.

Already, the Supreme Court has cancelled the allocation of 204 coal mines to all the respective companies. The mines will be auctioned as announced by the Ministry of Coal.

Hindalco stock price

On January 23, 2015, Hindalco Industries closed at Rs 144.75, up Rs 1.15, or 0.80 percent. The 52-week high of the share was Rs 198.70 and the 52-week low was Rs 96.95.

The company's trailing 12-month (TTM) EPS was at Rs 4.79 per share as per the quarter ended September 2014. The stock's price-to-earnings (P/E) ratio was 30.22. The latest book value of the company is Rs 177.87 per share. At current value, the price-to-book value of the company is 0.81.

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German regulator hails EMA's drugs suspension on GVK Bio

German drug regulator has welcomed the European Medicine Agency's (EMA) decision to suspend the marketing authorisation of around 700 generic drugs subjected to clinical trials by India's GVK Biosciences.

German drug regulator has welcomed the European Medicine Agency's (EMA) decision to suspend the marketing authorisation of around 700 generic drugs subjected to clinical trials by India's GVK Biosciences.

The move is being seen as the EU's determination to maintain high ethical and medical standards for approval of medicines. The EU drug regulator's announcement is also an endorsement of the Federal Institute for Drugs and Medical Devices' (BfArM) decision last month to ban the sale of 80 generic drugs on account of "substantial deficiencies" in clinical trials conducted by GVK Biosciences, the agency said in a statement. 

The German watchdog said it will take a decision shortly on whether to add more medicines to the list of banned drugs in the wake of the EMA's announcement. The agency based in Bonn had so far reviewed the marketing approvals of 176 generic drugs granted on the basis of clinical trial data provided by GVK Biosciences during the period between 2008 and 2014 and this will be extended to cover the period of 2004-2007 as recommended by the EMA, the statement said.

The EU drug regulator on Friday suspended the marketing authorisation of around 700 generic drugs on the grounds that their approvals were supported by "flawed" clinical trial data provided by the Indian company. 

It urged the European Commission to take a legally binding decision to ban the concerned drugs unless the marketing authorisation holder submits the results of a new bio-equivalence study.

The German regulator said out of around 50 medicines banned at present, suspension of marketing authorisation could not be implemented in the case of a total of 21 medicines due to legal challenges by their manufacturers and their sales will continue until further notice. It has no information that these medicines posed any health risk for patients who continued to use them, according to the statement.

The agency had lifted the suspension of marketing approval for several medicines after their manufacturers submitted new clinical trial data.

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Twitter acquires ZipDial for an undisclosed amount

Microblogging website Twitter was in final talks to acquire mobile marketing start up and our Young Turks ZipDial. Young Turks caught up with ZipDial and Twitter to find out more about the deal value and their future plans for emerging markets.

Microblogging website Twitter  was in final talks to acquire mobile marketing start up and our Young Turks ZipDial. Young Turks caught up with ZipDial and Twitter to find out more about the deal value and their future plans for emerging markets.

21.03 | 0 komentar | Read More

Indian biz fantastic; one of APAC's pillar: DHL

The e-commerce boom in India has led to logistic companies making significant changes in their business models.Storyboard's editor Anant Rangaswami spoke with DHL's APAC CEO Jerry Hsu to understand how the wordl's largest logistics company is coping with that change.

The e-commerce boom in India has led to logistic companies making significant changes in their business models. Apart from additional business, the largely B2B service providers now find themselves increasingly dealing with consumers and tackling issues faced by B2C companies. Storyboard's editor Anant Rangaswami spoke with DHL's APAC CEO Jerry Hsu to understand how the world's largest logistics company is coping with that change.

Watch videos for more.

21.03 | 0 komentar | Read More

Checkout: Why IBI names Sachin Bansal as one of its icons

Indian Business Icons (IBI) 2015 is a special initiative by CNBC-TV18 for celebrating 15 years of leadership. The endeavour is to form a distinct league of the most powerful business icons that the people of the country think have had a monumental impact on the Indian economy. The icon in focus is Sachin Bansal.

Indian Business Icons (IBI) 2015 is a special initiative by CNBC-TV18 for celebrating 15 years of leadership. The endeavour is to form a distinct league of the most powerful business icons that the people of the country think have had a monumental impact on the Indian economy. The names are now thrown open for public voting. The icon in focus is Sachin Bansal.

Watch video for more...

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Wish to raise tariffs by a few paisas ahead: Sunil Mittal

Making his oft-repeated argument, Bharti Enterprises chief Sunil Mittal said the telecom industry continues to face too much competition and unless M&A rules are streamlined, consolidation may be slow to set in.

"Until the market consolidates itself, pricing power does not come back. To be honest one wish I have is that we can gain few paisas over the next year or two," he told CNBC-TV18's Menaka Doshi on the sidelines of the World Economic Forum in Davos, Switzerland.

Bharti Airtel  has bought sufficient spectrum during the previous round of spectrum auction, Mittal said, adding that he anyway does not foresee very aggressive bidding in at least some bands or geographies due to prices being already high.

Excerpts from the conversation.

Q: What will Airtel do at the upcoming spectrum auction?

A: We did a big participation in the last round and have tanked up enough spectrum in all the circles perhaps barring one. We have got a good nice fall-back situation already built-up on the spectrum that we picked up from last time.

In fact we took more spectrum than what was required last time just in anticipation to have very little pressure on this auction. Having said that, we would like to have more spectrum. Data is growing. Being the leading market player Airtel needs to have more spectrum to service customers so we well be participating and we look forward to picking up some more chunks.

Q: Are you expecting aggressive biding? Will there be too much demand what kind of spectrum pricing should we look at?

A: Hard to say. I mean already the watermark has been raised significantly from what Telecom Regulatory Authority of India (TRAI) has recommended. Our hope was that the government will go with the TRAI recommendations, which in my point of view was already high. Let the market determine the price but clearly the government has decided to raise it up and I do not see prices rising too much in at least some of the bands and geographies but bidding is always uncertain. You never know.

Q: Are we going to see a corresponding increase in tariffs?

A: Tariffs should have been going up. In a year, year-and-a-half in the last two auctions my company alone as spent over USD 6 billion. The pricing power is not in the market, there are too many players. Many of them are marginal players, dying out; they are only in few circles. Until the market consolidates itself, pricing power does not come back. And I am not talking about pricing power that is going to be a bother for the customers because raising 5-10 paisa per minute or per megabyte does not even hurt an individual customer very much. However in the overall scheme of things, it generates enough cash for companies to invest in technology, invest in networks, go to rural areas. So, to be honest one wish I have is that we can gain few paisas over the next year or two.

Q: You spoke of too many players in the business. It isn't a new phenomena, we have been discussing this for several years now. I remember few years ago in Davos you told me that any market can support maximum six players -- that is the global average that experience has shown. We are much more than that, the M&A guidelines are out and we aren't seeing any consolidation?

A: Yes, because first of all six is really not the average, six is perhaps an outlier, most of the places it is three or four at the most. India being a very large country can probably have five or six. So, two or three very strong players, one or two in the middle and one struggling player. So, one BSNL plus four private players would be an ideal situation.

Now, why M&A is not moving forward is on account of a lot of pending issues; trading, sharing. Lot of people don't want to buy companies – that is buy the assets -- but they want to buy spectrum or customers. Take the case of Loop where we were willing to buy the customer case but that permission never came through. More clarity around M&A and in particular, spectrum trading and sharing is required.

Bharti Airtel stock price

On January 23, 2015, Bharti Airtel closed at Rs 383.70, up Rs 13.75, or 3.72 percent. The 52-week high of the share was Rs 419.90 and the 52-week low was Rs 282.10.

The company's trailing 12-month (TTM) EPS was at Rs 27.40 per share as per the quarter ended September 2014. The stock's price-to-earnings (P/E) ratio was 14. The latest book value of the company is Rs 166.93 per share. At current value, the price-to-book value of the company is 2.30.

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Eye Rs 2000cr potential revenue via bus biz: JBM Group

JBM Group  is in active discussions for bus orders that it expects to come in February. Nishant Arya, executive director, JBM Group says the company is eye Rs 2000 crore as potential revenue from the business.

Arya says the company will be able to produce 2000 buses per year and will not require any capital expansion for the same.

He further adds that the company has invested Rs 500 crore at the group level and is funding the same through internal accruals and debt.

Below is the verbatim transcript of Nishant Arya's interview with Sumaira Abidi & Reema Tendulkar on CNBC-TV18.

Reema: Can you tell us what could be the expected quantum of orders that you are hoping to get?

A: We will getting our orders next month so definitely once we have them on board we will be sharing with you but we are seeing that we will be starting to manufacture these buses in the month of March and with the capacity of about 2,000 buses per year we will be catering to our customers in freight transport undertakings, in airlines and schools.

Sumaira: Is this a government order and also can you give us a sense of what kind of margins would you enjoy on this?

A: The orders are a combination of all three different customers I just shared with you. The margins in the bus industry are depending on order to order because it is not like a car that is customised based on every customer's requirement. About 60 percent of the vehicle remains same what 40 percent is customised depending on the kind of requirements the customer have. So, that changes the perspective of the margins and the price.

Reema: Let's assume this capacity of 2,000 buses for which you are equipped for the next two years what could be the potential revenue if you do manage to sell all these 2,000 buses?

A: It should be close to Rs 2,000 crore.

Reema: What is the kind of investment that you have pumped in, to manufacture these buses and how was it funded?

A: We have invested about Rs 500 crore and we are funding through internal accruals and debt.

Sumaira: Can you give a rough sense of what it could be single digits, double digits what would it mean?

A: Definitely it will be double digit EBITDA margin.

Reema: So would that be margin accretive for you all?

A: Yes.

Reema: So eventually we should expect the company's margin to improve?

A: Yes, definitely in the coming year you will see the companies margin should improve.
JBM Group. 

Sumaira: Will you need to undertake some more capacity expansion to sort furbish these orders and will you be biding for any more such orders this year or going forward?

A: Biding for orders would be a ongoing exercise.

Sumaira: Would you need to ram up your capacity for that?

A: Not really, we will be able to use this capacity for delivering the orders we have on board.

Reema: You said that this Rs 500 crore of investment was funded by internal accruals and debt. Can you give us the break up? How much was debt?

A: This is not entirely done by JBM Auto as I said it is done at a group level so this includes publicly listed companies and private companies both. So I am only able to share that with you but it is a combination of both.

JBM Auto stock price

On January 23, 2015, JBM Auto closed at Rs 206.80, up Rs 5.00, or 2.48 percent. The 52-week high of the share was Rs 309.90 and the 52-week low was Rs 15.00.

The company's trailing 12-month (TTM) EPS was at Rs 9.65 per share as per the quarter ended September 2014. The stock's price-to-earnings (P/E) ratio was 21.43. The latest book value of the company is Rs 39.55 per share. At current value, the price-to-book value of the company is 5.23.

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Need change in 5/20 rule, says AirAsia's Tony Fernandes

CNBC-TV18's Menaka Doshi caught up with Tony Fernandes, CEO of AirAsia Group at the World Economic Forum Davos 2015 and asked him about the airline's experience in India so far.

CNBC-TV18's Menaka Doshi caught up with Tony Fernandes, CEO of AirAsia Group at the World Economic Forum Davos 2015 and asked him about the airline's experience in India so far.

Tony Fernandes, CEO, AirAsia Group

We have had a good start, we have never experienced this anywhere in the world, we have had such opposition to us which still continues. However, credit to government, credit to the authorities we got licences, we started. We even had one of our rivals send a note to say, how great our staff was and how he enjoyed flying on us which was great. We are still waiting for certain things to change; 5/20 rule etc. I read somewhere that the other airlines are opposing it, which I find a little bit disappointing because I have never felt that any where else in the world. For India to progress, it has going to have to change its mindset.

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Here's how govt can aid private sector finance healthcare

Find out how can the government incentivise and promote private sector participation in delivery and financing of healthcare, is a health cess warranted and what are the imperatives to address the many challenges the healthcare sector faces given the government's fiscal constraints.

Nachiket Mor, Member - Governing council, IKP Trust, Somil Nagpal, Senior Health Specialist, World Bank and K Sujatha Rao, Founding Board Member, Public Health Foundation of India discuss on will the health for all promise remain unrealised, how can the government incentivise and promote private sector participation in delivery and financing of healthcare, is a health cess warranted and what are the imperatives to address the many challenges the healthcare sector faces given the government's fiscal constraints.

21.03 | 0 komentar | Read More

Indian, US cos may sign pacts to set up electronic clusters

Indian and American companies are expected to sign agreements during the forthcoming visit of US President Barack Obama for setting up electronic clusters and developing smart cities.

Indian and American companies are expected to sign agreements during the forthcoming visit of US President Barack Obama for setting up electronic clusters and developing smart cities.

Several pacts and joint ventures are likely to be inked to increase economic cooperation between Indian and US companies in the presence of the President, sources said.

Besides, during the India-US CEO's forum meeting on January 26, both the sides would deliberate upon several issues including totalisation agreement, visa related problems, mandatory local content requirement and ways to fund development of infrastructure in India, they said.

The US President is coming on January 25 and he will be the chief guest at the Republic day celebrations here. He is expected to address the CEO's forum meeting. Setting up of electronic clusters by the private sector firms of both the countries would help India in reducing its import bill of electronic goods, which has increased 23 percent to USD 3.14 billion in December 2014.

"It would also help in boosting exports of electronic goods and manufacturing," they added. According to industry experts, India's electronic imports may surpass its oil import bill by 2030. The annual imports are at over USD 35 billion.

As regards smart cities, the government is proposing to set up 100 smart cities in the country which requires smart lighting solutions, among others. The concept of 'smart cities' as satellite towns of larger ones was enunciated in budget last year by the government which has allocated Rs 7,060 crore for the ambitious plan.

India has received USD 1.35 billion foreign direct investment from the US during April-November 2014 as compared to USD 806 million in 2013-14.

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Expediting environmental clearances to up output:Mines Secy

Mines Secretary Anup Pujari also added that transparency in allocation and monetisation of mining leases will attract companies to bid for minerals.

In an exclusive interaction with CNBC-TV18, Mines Secretary Anup Pujari said that government is pushing to expedite environmental clearances to increase production of minerals, which has come to a standstill.

"The mining sector was in standstill because of two reasons one, new mines were not being allocated and second the renewal process has come to a standstill as specially second and subsequent renewal," he said.

Pujari also added that transparency in allocation and monetisation of mining leases will attract companies to bid for minerals.

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